International Financial flows are the major instruments to bridge the gap between revenue and expenditure. Since the LDCs have lower capacity for capital mobilization, the Foreign Aid and foreign public investment are the some of the major sources of financing the development projects. But the questions arises, how much are they effective for domestic resources mobilization and their contribution in the economic development of particular country?
Your are correct Remi Chukwudi Okeke that a lot of econometric research are available in RG and other good journal. But most of the research shows the results of software and lacks to check and present the reality of its impact on particular country. I think most of the econometric research outputs are far beyond the reality.
In addition to the problem of public sector corruption, there's another key factor. Investment in public infrastructure is critical to economic success. But, if infrastructure is well-planned and well-executed, it inflates the price of nearby land. This is the fuel for land speculation - a parasitic activity that creates nothing of value and which further inflates land prices. (Land speculation is also a powerful force behind corruption associated with infrastructure development.)
High land prices drive development away from infrastructure to cheaper, but more remote sites. These remote sites are handicapped by their lack of infrastructure. If infrastructure is extended to them, land prices rise and development is chased even further away. The resulting urban sprawl is bad for the environment. It is bad for the public sector (that must pay for the wasteful duplication of infrastructure). It is also bad for the private sector that is hampered by inefficient land use patterns often accompanied by transportation difficulties.
This infrastructure conundrum has been remedied in some places. Japan and Taiwan were transformed from third-rate to first-rate economic powers as a result of instituting land value return policies. Returning publicly-created land value to the public sector helps make infrastructure financially self-sustaining. It also reduces land speculation and land prices. Surprisingly, it induces development of high-value land (typically land near existing infrastructure).
For more information on land value return, see "Financing Infrastructure with Value Capture: The Good, The Bad & The Ugly" at https://www.strongtowns.org/journal/2018/2/20/financing-infrastructure-with-value-capture-the-good-the-bad-the-ugly/ .
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